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Ambitious promises to transform the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his unlikely victory on election day. Among them are fare-free transit, childcare for all, and a massive expansion in affordable homes.

However, making the urban center more affordable for inhabitants is an expensive government task, and numerous economists and politicians to Mamdani’s right say he faces numerous obstacles to meaningfully deliver on his signature ideas.

Adding complexity to matters is the national government, which will likely withhold financial support for the city in an attempt to sabotage Mamdani and open up funding gaps that make it more difficult to pay for fresh initiatives.

Additionally, the city must get state legislature approval to modify several income sources. One expert pointed to the state legislature blocking the city from increasing dog licensing fees in a prior year due to a dispute between the then mayor and a state representative.

“A striking way of putting it is New York City cannot increase dog licensing fees without state approval, and it was true then, and it remains the case today,” he said.

However, he and other experts point to tailwinds: Mamdani’s ideas are very popular and would solve basic problems. The Democratic party now have significant control in the state government, and several identify economic and political pathways to making the proposals reality.

How might Mamdani finance his bold program? We broke it down by revenue source and initiative.

Generating Revenue

His team estimates it could generate approximately $10bn by increasing the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Detractors say businesses and the wealthy will relocate, but this is disputed by credible research. Moreover, the corporate tax is on profits made in the region no matter where a company is located, rendering the argument at least partially moot.

Business Levy Increase

Mamdani estimates a state tax increase between seven point two five percent and 11.5% on corporate profits would generate about five billion dollars, much of which would be funneled to the city. State leaders would have to approve the plan. Legislative leaders have previously supported similar proposals, but the governor is against increasing levies.

However, the state leader backs childcare for all, a highly favored initiative because childcare is commonly seen as too expensive, said one policy director. It would be difficult for centrist lawmakers to “resist passing a landmark initiative”, he added. “No one argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, the expert explained, has been a leader like Mamdani who says: “Yeah, it costs money, and we’re gonna increase revenue to get it done.”

Raising Levies on the Affluent

Mamdani’s plan calls for raising four billion dollars with a two percent hike on those making more than one million dollars annually. Though it’s a municipal levy, the state legislature must authorize the rise, and the proposal is generally opposed by moderate lawmakers.

But there is a political pathway, the expert noted. Increasing taxes on the rich is broadly popular and, as with the business tax hike, allocating the proceeds to fund popular programs makes it easier to promote in the state capital.

Halt on Rent Increases

Regarding cost, a rent freeze on regulated housing is the easiest to enforce – it’s minimally costly. However, a halt must be approved by the housing panel, and there may not be enough support on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Transit

The plan estimates free buses will cost a minimum of seven hundred million dollars, which includes an evasion rate of 48%. Observers say Mamdani could likely cover the expense by streamlining or cutting additional services in the municipal $116bn annual spending plan.

City-Owned Grocery Stores

A trial initiative for several city-owned grocery stores that would be built in neglected “food deserts” is projected at $60m and could also be funded by shifting focus in the one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Units

Many people to the conservative side of Mamdani have written off the proposal to spend approximately $100bn building two hundred thousand affordable units over a decade, largely because it would necessitate substantial borrowing. He clarified those arguing against this aspect largely overlook that the initiative is not to borrow $100bn immediately – the debt would be accrued and paid down in phases over several government terms.

He also stressed the proposal is not for no-cost homes, but cost-effective residences that would produce income to pay down debt. Furthermore, the projects could in part be funded by private investment.

“This is how the proposal adds up,” the expert concluded.

Universal Childcare

Establishing universal childcare would require between two point five billion dollars and $12bn by most estimates, depending on whether it is a city or state program and other factors. Funding is the major uncertainty – can the business and high-earner levies pass Albany? One analyst commented he expected negotiated adjustments, as often happens with big proposals.

“The things that Mamdani promised will likely be scaled back,” he said. “Furthermore the state leader’s stated opposition to tax increases may just confront practical limits – she likely cannot achieve the objectives she desires on the expenditure front without some flexibility on the revenue side.”